Case analysis of IKEA in Stockholm, Sweden

According to the interview, larger purchasing amount or frequency represent customers’ loyalty to the brand and his is similar with Sä llberg’s (2004) theory. Moreover, customers’ word-of-mouth is also mentioned in the interview. This is similar with Dick and Basu’s (1994) theory of attitude. About how to improve purchasing amount or frequency, according to the interview, both activities before and during the transaction are important. Advertisements in variety of channels should be paid attention on. Furthermore, service and promoting method during the transaction is also important. Based on the interview, the interviewee thinks that loyalty to product and brand are different.

According to in the interview, loyalty to product can be viewed as customers’ preference to products. This is similar with Torres-Moraga's et al. (2008) theory. Furthermore, the interview mentions the research of customers’ preference to products is useful to improve customers’ loyalty to brand and this is similar with Torres-Moraga's et al. (2008) theory. According to the interview, company should pay attention on customers’ attitude. IKEA’s promoting strategy is to create the same value with their customers. Therefore, it is important for IKEA to know how customers feel about their products and brands. This is similar with Ball’s et al. (2004) theory. Moreover, about how to improve customers’ attitude, it is mentioned in the interview that the member membership system is a good instrument for doing this. Besides that, the service quality during the transaction is important for improving customers’ attitude. About the reason of implementing customer loyalty strategy, in this case, IKEA’s reason is to better understand customers and get more ideas of designing. This is not similar with Nykamp’s (2001) theory. Besides that, according the interview, implementing customer loyalty can better help company defend against their competitors. Therefore, this is similar with Nykamp’s (2001) first case. In the interview, it is mentioned that trust is important. Its basis is the quality of both products and services.

Moreover, communication is also important to establish trust between customer and company. In addition, about the mutual commitment, according to the interview the best way of improving commitment is give customer opportunity to understand the company and products. Besides that, it is also mentioned in the interview that the information of company and product should be delivered to customers openly and customers’ feedback and inquiries should be handled carefully. In addition, about the third basis of customer loyalty, it is mentioned that two dimensions of communication are important for company. The first one is “to customers” and another is “from customers”. About the first one, it means delivering information to customer with all the channels, such as TV, newspaper, website and IKEA catalogue. About “from customers”, it means answer customers’ inquires and help to solve problems. The last basis of customer loyalty is “conflict handling”. According to the interview, company should have special customer service department to help customer to solve problems about products quality, assembling and transporting. Besides that, it is mentioned in the interview that companies’ attitude is important for handling conflicts. According to the interview, IKEA divides customers to some group in their membership system. The customers classifying method is regarded to help company to better understand customers and better reward them. This is similar with Curry’s (2000) and Torres-Moraga’s et al. (2008) theory about the advantages of customer classifying. For some active customers company need to pay attention on their feedback and keep communication channel available. For some other inactive customers, it is mentioned in the interview that communication among customers is important. Loyal customers’ good word-of-mouth can help to attract new customers. In the interview, it is mentioned that customer loyalty can help to reduce cost compared with traditional marketing method, which is similar with Sä llberg’s (2004) theory. Moreover, customer loyalty strategy can bring more advantages, for example, customers will view company as partner, which is the similar with Nykamp’s (2001) theory.

Based on the interview, for existing customers, it is easier to manage through customer loyalty strategy. And for new customers, company need to make more effort to get customers’ loyalty. Advertising and communication are more useful to attract new customers. However, study to existing can help to improve efficiency of advertising and communication and sometimes existing customers’ word-of-mouth can also be helpful. This is similar with Duffy's (2003) theory of “referrals”.